Question: A project has the cash flows shown below. What is the Payback Period of this project? Year Cash Flow 0 -$355 1 $98 2 $88

A project has the cash flows shown below.  What is the Payback Period of this project?

  Year    Cash Flow  
0-$355
1$98
2$88
3$74
4$64
5$51
6$46

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The payback period is the time it takes for an investment to ge... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Corporate Finance Questions!

Q:

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...

Q:

Assume you are a budding chef, and you want to change careers to run a gourmet food truck, the job of your dreams. Decide whether to quit your current job. Assume that your current job pays $16,000...

Q:

A survey of information systems managers was used to predict the yearly salary of beginning programmer/analysts in a metropolitan area. Managers specified their standard salary for a beginning...

Q:

A project has the cash flows shown below. What is the Payback Period of this project? Year Cash Flow 0 -$194 1 $93 2 $85 3 $71 4 $60 5 $52 6 $45 a.2.22 years b.1.22 years c.1.37 years d.2.37 years...

Q:

KVE corporation is considering investing in a project with the cash flows shown below. Compute the discounted payback statistic for the project and recommend whether the firm should accept or reject...

Q:

KVE corporation is considering investing in a project with the cash flows shown below. Compute the discounted payback statistic for the project and recommend whether the firm should accept or reject...

Q:

I need assistance in completing the open ended portion that could be found on the last page of the pdf file. Part A most importantly is what I need assistance with, the data that needs to be...

Q:

1. For HW 11, Problem 1, uncertainties associated with predicting the revenues and cost of manufacturing are estimated to be as follows: (solution for homework 11 problem 1 is given in the photos)...

Q:

Year 0 1 2 3 4 Project A -27 5 10 15 20 Cumulative Cash flows -27 -22 -12 3 23 Payback Period = Year before cash flows become positive + (- Cumulative cash flow of Year 3/Cash flow of Project A for...

Q:

5.Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 8 percent, and that the maximum...

Q:

One of the most famous large fractures (cracks) in the earth's crust is the San Andreas fault in California. A geologist attempting to study the movement of the earth's crust at a particular location...

Q:

Use the following list of attributes and information from the UML Class Diagram to identify the number of the appropriate attribute for each blank in the table listing below. Attributes: 1. Cash...

Q:

Find the indefinite integral of 1 x 4 d x . 1 x 2 4 C l n | x 4 | C 1 x 4 c 1 ( x 4 ) 2 C - l n | x 4 | C

Q:

The Flapjack Corporation had 8,200 actual direct labor hours at an actual rate of $12.40 per hour. Original. Production had been budgeted for 1,100 units, but only 1,000 units were actually produced....

Q:

A flask at room temperature contains exactly equal amounts (in moles) of nitrogen and xenon. Sort the conditions based on the gas described. Some may have more than one answer, but noe will have the...

Q:

What was southwests main goal introducing the early-bird check-in?

Q:

Consider a CONFERENCE-REVIEW database in which researchers submit their research papers for consideration. Reviews by reviewers are recorded for use in the paper selection process. The database...

Q:

If the company decides to sell through retailers instead of directly to consumers online, to maintain the consumer price of $276.67, at what price must it sell the product to a wholesaler who then...

Q:

FAR 42.503-23. You are the contracting officer for a requirement for supplies in support of a humanitarian operation. You want to know what emergency acquisition flexibilities might be available when...

Q:

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-4. Ivan and Irene paid the following in 2012 (all by check or can otherwise be...

Q:

Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $4,000. Total real estate taxes for the home are $950, and...

Q:

Lisa Sizemore, a taxpayer in the 10-15 percent tax bracket, purchased stock as an investment on July 11, 2011. She sold the stock on July 9, 2012, 2 days before qualifying for the long-term holding...

Q:

Refer to the following information provided in the chapter for Arcot Company: Consolidated financial statements in Exhibits 10.8 and 10.9. Differences between Local GAAP and U.S. GAAP in Exhibit...

Q:

China Petroleum & Chemical Corporation (Sinopec) provides two sets of financial statements in its annual report. One set of financial statements is prepared in accordance with Chinese (PRC)...

Q:

China Eastern Airlines (CEA) Corporation Limited prepares a set of financial statements in accordance with IFRS (in Chinese renminbiRMB). Until 2007, the company also provided a reconciliation of...